The lender said that the product being stressed on the pay rate, as opposed to its standard variable rate, can allow for more “generous loan sizes” and offer “certainty of payments” over the term.
The up to 95 per cent LTV product is aimed at first-time buyers but home movers are also eligible.
The deal includes a basic valuation, no completion fee and is priced at 5.99 per cent until 14 February 2029.
Tom Denman-Molloy, intermediary sales manager, Mansfield Building Society, said: “As a mutual, Mansfield Building Society always wants to play a significant role in helping first-time buyers to take their first step onto the housing ladder. Affordability can often pose a challenge for this group of customers, especially now, with higher rates putting a squeeze on their borrowing power.
“By launching a five-year fixed rate with affordability based on the pay rate, we are helping first-time buyers – and other high LTV customers – to secure the loan they need, whilst also giving them confidence that their mortgage rate won’t increase in the next five years.”
Hanley Economic BS adds fee-free two-year fix
Hanley Economic Building Society has released a fee-free two-year fixed rate at 75 per cent LTV priced at 5.55 per cent.
It is available for purchase and remortgage and includes a free valuation and a £250 contribution to remortgage legals.
The deal is eligible for properties in England, Wales and Scotland (Scottish Islands by referral), with loan sizes available between £30,000 to £500,000.
David Lownds, head of products and marketing at Hanley Economic Building Society, said: “As we move towards the end of what can easily be described as a somewhat challenging year for lenders, intermediaries and many borrowers, it’s good to see increased competition emerging across the product arena and rates slowly but steadily decreasing.
“Despite a largely expected transactional lull, it’s important to point out that mortgage business is still being written and it’s vital that we, as a lending community, continue to find ways to provide responsible and well-priced solutions which can meet a range of borrowing demands moving forward.”
